2014 (4) TMI 312

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....w, the Hon'ble CIT(A) erred in deleting the addition of Rs.9,12,549/- made on account of material purchase because it was not used for business purpose. [2] On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in deleting the addition of Rs.1,00,341/- made by invoking section 40(A)(3) of the IT Act in respect of cash payment exceeding Rs.20,000/- in a single day at one time. [3] On the facts and in the circumstances of the case and in law, the Ld.CIT(A) ought to have upheld the addition made by the A.O. [4] It is, therefore, prayed to set aside the order passed by the CIT(A) and that of the order passed by the AO be restored. [5] The appellant craves leave to add, alter or amend any grounds of a....

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....that as per agreement, the assessee was required to purchase consumables and submitted that apart from labour contract, assessee also carried out certain other works in which the material was required to be purchased. He submitted that the AO was not justified in holding that the expenditure was not for the business purpose. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. It was found that the expenses have been claimed in respect of material consumed despite the assessee-company a labour work contractor Before AO, it was submitted by the assessee that apart from labour contract, they were executing other contract works also in which the material is pr....

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....ided this issue vide para-6.3 of his order, which is reproduced hereunder for the sake of clarity. "6.3. CONCLUSION : I have carefully considered the finding of the AO and the submissions made by the ld.AR. There is no dispute that the appellant had taken up project at: Sarangkheda, Maharashtra. The project was at remote place where no banking facility is available. Looking to the nature of assessee's business, firm needs petrol and diesel frequently. The petrol pump is at nearest village namely Shahda, a 20 K.M. away from Sarangkheda, Maharashtra. Because there was no banking facility available in that area, the assessee had no option but to pay cash for purchase of petrol and diesel. There is a force in the contention of the ld.AR. The....